A cheque received from a customer and deposited but dishonoured is recorded in cash book by: MCQ with Answer and Explanation

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A cheque received from a customer and deposited but dishonoured is recorded in cash book by:

A. Only a note

B. Crediting bank account and debiting customer account

C. Debiting bank account and crediting customer account

D. No entry

Answer: Option B

Solution (By JKSSB Mock Tests)

On dishonour, the bank balance decreases, so credit bank; customer again becomes debtor, so debit customer.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

The 'Minor' in a partnership can be admitted:

A. As a managing partner

B. As a sleeping partner with liability

C. Only to the benefits of the partnership

D. As a full partner

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Correct Answer: Option C

Explanation:
A minor cannot be a partner but can be admitted to benefits of the firm, with limited liability.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

S1: Marginal cost is the sum of prime cost and variable overheads. S2: Marginal cost includes fixed overheads. Which statement(s) is/are correct?

A. S1 only

B. Neither S1 nor S2

C. S2 only

D. Both S1 and S2

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Correct Answer: Option A

Explanation:
Marginal cost represents the total variable cost of production, which is Prime Cost (Direct Material + Direct Labor + Direct Expenses) plus Variable Overheads. It strictly excludes fixed overheads. S1 is correct, S2 is incorrect.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

The full form of GAAP is:

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Correct Answer: Option A

Explanation:
GAAP stands for Generally Accepted Accounting Principles.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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